Important Update About Your Morgan Stanley Access Direct Brokerage Account

• Debit Cards: If you have recurring payments made via the debit card associated with your MSAD Account, you will need to reenter your payment instructions after the conversion using the new E*TRADE debit card information once received (or set up alternate arrangements).
• Mobile Check Deposit: Once the conversion is complete, you can use the mobile check deposit feature on the E*TRADE app to deposit money into your new E*TRADE Account, or mail a check(opens in a new tab).
• Bill Pay: Once the conversion is complete, you will need to set up Bill Pay transactions through etrade.com(opens in a new tab). You can do so by logging on to your new E*TRADE Account and going to Transfer > Bill Pay.
• Wires: Once the conversion is complete, you can initiate incoming wire requests to your new E*TRADE Account by visiting etrade.com/wiretransfer(opens in a new tab), or outgoing wire requests from your new E*TRADE Account by visiting  us.etrade.com/etx/mm/wire-transfer(opens in a new tab).
• Direct Deposit: Once the conversion is complete, if you have existing direct deposits, you will need to update your instructions with the depositors using the E*TRADE routing number (ABA number 056073573) and your new account number. You can view this number by logging on to etrade.com, locating the account on the Complete View page, and selecting Routing and account number from the Quick links menu.
• Automatic Payments: Once the conversion is complete, you will need to either 1) create new payment instructions using Bill Pay on etrade.com and cancel your payment instructions with the biller; or 2) update the payment instructions with your billers using the E*TRADE routing number (ABA 056073573) and your new account number.
• Mobile Wallet: Once the conversion is complete, you will need to update your mobile wallet using the new debit card information associated with your new E*TRADE Account.

Due to the conversion, the following statements and reporting changes will apply:

• For the month in which your MSAD Account is converted to an E*TRADE Account, you’ll receive two account statements from Morgan Stanley:
  • One for your MSAD Account displaying a zero balance along with any account activity that took place prior to the conversion, as well as the movement of all securities, funds, and balances to your new E*TRADE Account.
  • A second for your new E*TRADE Account detailing any account activity that took place after the conversion, as well as the receipt of all securities and funds from your MSAD Account.         
• After the conversion, you’ll continue to receive your account statements no less frequently than quarterly as long as you have a security position, account balance, or account activity.
• If there is residual activity (e.g., dividend payments) in your MSAD Account after the conversion, you may receive a subsequent statement from Morgan Stanley as these assets are received and then transferred to your new E*TRADE Account.
• Going forward, you will receive a combined statement showing both stock plan and other assets held in your new E*TRADE Account, along with a separate Stock Plan Information section in the account detail; however, some features and data points will no longer be available.  You can learn more about the new statement at etrade.com/mss(opens in a new tab).

Features Not Available

• If applicable, you will no longer be able to link accounts; account statements will be sent separately for your accounts.
• The ability to sort the statement by category for your new E*TRADE Account is not available.
• Account nicknaming is also not available for your new E*TRADE Account statement, and nicknames will no longer display if one was established.

Data Not Available

• The statement for your new E*TRADE Account will no longer include separate Realized and Unrealized gain/loss sections, tax lots, unit cost, and trade date. Please refer to etrade.com for these details.
• You can learn more about the new statement at etrade.com/mssbstatementguide(opens in a new tab).

Due to the conversion, the following tax-related changes will apply:

Cost Basis

• Cost basis will be automatically carried over from your MSAD Account.

Tax Lot Trade Preferences

• The tax lot trade preferences for your MSAD Account will be carried over to your new E*TRADE Account.
• To update your tax lot preferences after the conversion, visit etrade.com/myprofile > Account Preferences, then scroll to Cost Basis > Lot Selection.

Tax Reporting

• For tax year 2024, you will receive separate IRS tax forms (e.g., Form 1099 or Form 1042-S), as well as any applicable state income tax forms, if you have reportable activity in your MSAD Account during 2024 prior to the conversion and in your new E*TRADE Account during 2024 after the conversion.
• You may be required to account for information from all tax statements when completing tax returns. If you have questions about tax statements, please consult your tax advisor.

Wash Sales

• For a temporary period of up to 45 days following the conversion of your account, wash sale calculations may not be displayed on etrade.com or MSO. This will not, however, impact your 2024 tax reporting on Form 1099-B.

• Your sweep option will not change. Free credit balances from your new E*TRADE Account will continue to sweep to interest-bearing deposit accounts through a Morgan Stanley bank sweep program called the Bank Deposit Program (“BDP”), or to a money market sweep fund, based on eligibility.
• After the conversion, interest rate tiers will be determined based on the total deposit balance in your account, and the current rate of interest for BDP can be found at etrade.com/rates(opens in a new tab). As a result, the BDP interest rate tier and the BDP interest rate for your account may change.
• Important Information: If your account is converting on November 22, 2024 and you have used Bill Pay in the past 12 months, your uninvested cash will not be transferred to your new E*TRADE Account until on or around the weekend of December 6, 2024.